PAPA JOHN'S INTL INC (PZZA) Stock Fundamental Analysis
USA - NASDAQ:PZZA - US6988131024 - Common Stock
52.01 USD
-1.02 (-1.92%)
52.25 USD
+0.24 (+0.46%)
We assign a fundamental rating of 4 out of 10 to PZZA. PZZA was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While PZZA is still in line with the averages on profitability rating, there are concerns on its financial health. PZZA is valied quite expensively at the moment, while it does show a decent growth rate. Finally PZZA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PZZA had positive earnings in the past year.
In the past year PZZA had a positive cash flow from operations.
Each year in the past 5 years PZZA has been profitable.
PZZA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PZZA (8.39%) is better than 80.74% of its industry peers.
PZZA has a better Return On Invested Capital (15.93%) than 83.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PZZA is significantly above the industry average of 10.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | N/A | ||
| ROIC | 15.93% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.1%
ROIC(5y)18.49%
1.3 Margins
Looking at the Profit Margin, with a value of 3.58%, PZZA is in line with its industry, outperforming 51.85% of the companies in the same industry.
In the last couple of years the Profit Margin of PZZA has grown nicely.
PZZA's Operating Margin of 5.95% is in line compared to the rest of the industry. PZZA outperforms 42.96% of its industry peers.
In the last couple of years the Operating Margin of PZZA has grown nicely.
The Gross Margin of PZZA (27.24%) is worse than 79.26% of its industry peers.
In the last couple of years the Gross Margin of PZZA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.95% | ||
| PM (TTM) | 3.58% | ||
| GM | 27.24% |
OM growth 3Y-6.37%
OM growth 5Y42.55%
PM growth 3Y174.07%
PM growth 5YN/A
GM growth 3Y-3.81%
GM growth 5Y-0.4%
2. Health
2.1 Basic Checks
PZZA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, PZZA has more shares outstanding
PZZA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PZZA has an improved debt to assets ratio.
2.2 Solvency
PZZA has an Altman-Z score of 3.88. This indicates that PZZA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.88, PZZA belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
The Debt to FCF ratio of PZZA is 13.58, which is on the high side as it means it would take PZZA, 13.58 years of fcf income to pay off all of its debts.
PZZA has a Debt to FCF ratio (13.58) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.58 | ||
| Altman-Z | 3.88 |
ROIC/WACC2.1
WACC7.58%
2.3 Liquidity
A Current Ratio of 0.82 indicates that PZZA may have some problems paying its short term obligations.
With a Current ratio value of 0.82, PZZA perfoms like the industry average, outperforming 42.96% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that PZZA may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, PZZA is not doing good in the industry: 61.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for PZZA have decreased strongly by -32.72% in the last year.
Measured over the past years, PZZA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.87% on average per year.
Looking at the last year, PZZA shows a decrease in Revenue. The Revenue has decreased by -1.46% in the last year.
The Revenue has been growing slightly by 4.93% on average over the past years.
EPS 1Y (TTM)-32.72%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-32.79%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%4.19%
3.2 Future
PZZA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.87% yearly.
Based on estimates for the next years, PZZA will show a small growth in Revenue. The Revenue will grow by 6.01% on average per year.
EPS Next Y-23.87%
EPS Next 2Y-0.94%
EPS Next 3Y4.35%
EPS Next 5Y17.87%
Revenue Next Year3.06%
Revenue Next 2Y1.99%
Revenue Next 3Y2.02%
Revenue Next 5Y6.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.42 indicates a quite expensive valuation of PZZA.
The rest of the industry has a similar Price/Earnings ratio as PZZA.
When comparing the Price/Earnings ratio of PZZA to the average of the S&P500 Index (27.40), we can say PZZA is valued inline with the index average.
PZZA is valuated rather expensively with a Price/Forward Earnings ratio of 22.65.
The rest of the industry has a similar Price/Forward Earnings ratio as PZZA.
PZZA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.42 | ||
| Fwd PE | 22.65 |
4.2 Price Multiples
PZZA's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as PZZA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.15 | ||
| EV/EBITDA | 12.66 |
4.3 Compensation for Growth
The decent profitability rating of PZZA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.91
EPS Next 2Y-0.94%
EPS Next 3Y4.35%
5. Dividend
5.1 Amount
PZZA has a Yearly Dividend Yield of 4.35%, which is a nice return.
PZZA's Dividend Yield is rather good when compared to the industry average which is at 6.99. PZZA pays more dividend than 90.37% of the companies in the same industry.
PZZA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
5.2 History
On average, the dividend of PZZA grows each year by 8.81%, which is quite nice.
PZZA has been paying a dividend for at least 10 years, so it has a reliable track record.
PZZA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.81%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
PZZA pays out 81.41% of its income as dividend. This is not a sustainable payout ratio.
PZZA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP81.41%
EPS Next 2Y-0.94%
EPS Next 3Y4.35%
52.01
-1.02 (-1.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.39%
Inst Owner Change0.79%
Ins Owners1.1%
Ins Owner Change0.62%
Market Cap1.70B
Analysts74.55
Price Target53.23 (2.35%)
Short Float %12.08%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
Yearly Dividend1.86
Dividend Growth(5Y)8.81%
DP81.41%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.81%
Min EPS beat(2)0.08%
Max EPS beat(2)21.54%
EPS beat(4)3
Avg EPS beat(4)11.03%
Min EPS beat(4)-1.65%
Max EPS beat(4)24.17%
EPS beat(8)6
Avg EPS beat(8)10.84%
EPS beat(12)7
Avg EPS beat(12)6.12%
EPS beat(16)9
Avg EPS beat(16)5.49%
Revenue beat(2)1
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-1.05%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)0.06%
Min Revenue beat(4)-1.05%
Max Revenue beat(4)0.85%
Revenue beat(8)2
Avg Revenue beat(8)-2.25%
Revenue beat(12)2
Avg Revenue beat(12)-2.54%
Revenue beat(16)3
Avg Revenue beat(16)-2.23%
PT rev (1m)0%
PT rev (3m)9.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)4.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.42 | ||
| Fwd PE | 22.65 | ||
| P/S | 0.82 | ||
| P/FCF | 30.15 | ||
| P/OCF | 12.96 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.66 |
EPS(TTM)1.83
EY3.52%
EPS(NY)2.3
Fwd EY4.42%
FCF(TTM)1.73
FCFY3.32%
OCF(TTM)4.01
OCFY7.72%
SpS63.65
BVpS-13.19
TBVpS-15.53
PEG (NY)N/A
PEG (5Y)1.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.39% | ||
| ROE | N/A | ||
| ROCE | 20.74% | ||
| ROIC | 15.93% | ||
| ROICexc | 16.87% | ||
| ROICexgc | 19.53% | ||
| OM | 5.95% | ||
| PM (TTM) | 3.58% | ||
| GM | 27.24% | ||
| FCFM | 2.71% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.1%
ROIC(5y)18.49%
ROICexc(3y)20.56%
ROICexc(5y)20.67%
ROICexgc(3y)23.77%
ROICexgc(5y)24.21%
ROCE(3y)24.87%
ROCE(5y)24.07%
ROICexcg growth 3Y-9.79%
ROICexcg growth 5Y44.21%
ROICexc growth 3Y-9.04%
ROICexc growth 5Y45.25%
OM growth 3Y-6.37%
OM growth 5Y42.55%
PM growth 3Y174.07%
PM growth 5YN/A
GM growth 3Y-3.81%
GM growth 5Y-0.4%
F-Score6
Asset Turnover2.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.58 | ||
| Debt/EBITDA | 3.88 | ||
| Cap/Depr | 105.19% | ||
| Cap/Sales | 3.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.36% | ||
| Profit Quality | 75.62% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 3.88 |
F-Score6
WACC7.58%
ROIC/WACC2.1
Cap/Depr(3y)124.88%
Cap/Depr(5y)117.36%
Cap/Sales(3y)3.61%
Cap/Sales(5y)3.22%
Profit Quality(3y)80.41%
Profit Quality(5y)690.68%
High Growth Momentum
Growth
EPS 1Y (TTM)-32.72%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-32.79%
EPS Next Y-23.87%
EPS Next 2Y-0.94%
EPS Next 3Y4.35%
EPS Next 5Y17.87%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%4.19%
Revenue Next Year3.06%
Revenue Next 2Y1.99%
Revenue Next 3Y2.02%
Revenue Next 5Y6.01%
EBIT growth 1Y-23.35%
EBIT growth 3Y-6.51%
EBIT growth 5Y49.57%
EBIT Next Year43.01%
EBIT Next 3Y17.52%
EBIT Next 5Y19.41%
FCF growth 1Y-32.36%
FCF growth 3Y-33.5%
FCF growth 5Y7.27%
OCF growth 1Y-20.75%
OCF growth 3Y-16.73%
OCF growth 5Y11.55%